Genzyme Beats Estimates, Raises Outlook - TheStreet

Genzyme Beats Estimates, Raises Outlook

Revenue climbs 18%.
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Genzyme

(GENZ)

beat per-share earnings estimates by 7 cents and increased guidance on Wednesday.

The biotechnology company reported GAAP net income of $139.9 million, or 51 cents a share, compared with $134.5 million, or 49 cents a share, in the year-ago quarter. The Thomson Financial consensus target from analysts was 81 cents a share.

Non-GAAP net income increased 32% to $238.7 million from $181.2 million last year. The company earned 88 cents a share compared with 68 cents a share in 2006 on a non-GAAP basis. These figures exclude pretax stock-compensation expenses of $71.8 million, amortization of $49.5 million and a $25 million milestone payment to Ceregene.

Revenue climbed 18% to $933.4 million from $793.4 million in the same period in 2006.

On the therapeutics side, sales of Pompe disease treatment Myozyme were $46.7 million, compared with $6.5 million in the same period in 2006 following its launch. Enzyme replacement therapy Fabrazyme saw sales increase 17%, to $104.3 million; sales of MPSI, or Hurler Syndrome, therapy Aldurazyme rose 24% to $29.1 million; and injectable thyroid cancer treatment Thyrogen sales grew 25% to $29.5 million.

Oncology revenue, including sales of pediatric leukemia drug Clolar and profits and royalties from B-cell chronic lymphocytic leukemia treatmentCamPath, increased 27% to $17.4 million from $13.7 million in the second quarter a year ago.

Additionally, sales of its renal-failure product Renagel increased 14% to $145 million.

Looking ahead, the company increased its full-year guidance and now expects to earn $3.35 to $3.40 a share, in comparison with previous estimates of $3.20 to $3.30 a share. Furthermore, the Genzyme said it expects earnings to grow at a compound average of 20% annually from 2006 to 2011, "based on its strong and consistent performance, the potential of its deep product portfolio, and the leverage from its global infrastructure."

Within the next year, Genzyme said it will apply for approval to market Mozobil for stem cell transplantation, as well as for CE Mark approval in Europe for hylastan for osteoarthritis pain management. It expects to gain approval for Campath as a first-line treatment for B-cell chronic lymphocytic leukemia, and it will seek U.S. approval for Clolar as a first-line treatment for adult patients with acute myeloid leukemia.

The company also says it will launch Renvela, a second-generation form of Renagel, for patients with chronic kidney disease, and Synvisc-One, an investigational combined-dose regimen of Synvisc, provided in a single injection.

Genzyme shares were up $2.93, or 4.8%, to $63.42.